Santo Domingo.- The Chamber of Deputies will mull Barrick Gold’s Pueblo Viejo mine (central) contract, and pledged to seek a review of the agreement’s terms, Chamber president Abel Martinez announced Tuesday.

The announcement comes after months of pressure from various sectors, who note gold’s skyrocketing price in global markets.

He said Congress, in adherence with Article 93 of the Constitution, can "approve or disapprove the contracts submitted by the President of the Republic, in accordance with the provisions of article 128, paragraph 2), item d) and subsequent amendments or modifications that alter the conditions originally set out in the contracts at the time of legislative approval."

Martinez said the measure seeks more favorable terms for the country and the national interest. "Since the initial factors that led to the approval of this contract have changed, it is urgent for the sake of the country's assets and the nation’s interest, which these terms are reviewed and the Chamber of Deputies will not rest until the country gets what is fair for such exploitation."

The lawmaker said his colleagues from all parties agree on the need for a review of the contract with Barrick, which earlier this month announced it will start marketing the mined gold.

Among the provisions he said would be revised is that when the company has recovered its entire investment, and has obtained 10 percent internal rate of return, it will begin to pay the government 28.75% interest on net profit and 25% tax on income.

Cotuí

Also to be reconsidered is that the multinational was allowed to increase its total investment from US$700 million to US$1.5 billion and, not satisfied with that, raised to US$2.6 billion, and, upon seeing no objection from its main partner, the investment was increased to US$3.5 billion. Curetntly there are reports of ratcheting it up to US$ 4.billion, without taking the country’s interests into account.

When the original contract was signed, gold sold for US$300 an ounce in global markets, and is currently at US$1,654 per ounce.

Idiotic Dominican Politicians. Will they never understand the role of the RULE OF LAW in business and investment ......?

You cannot sign a contract especially one involving billions of dollars of investment and a projected timeline of 20,30, 40 years which is the life of the mine and then try to change it because of the ¨government interest´´ .........

They are sending a message to the rest of the world, that DR is NOT the place to come and do majpr business and investment. The government will change its terms at any time after you start in order to protect ´´government interest´´ which is nver determined firmly before hand and subject to change depending on how much the polticians think they can extort from private busineess........

Way to go in killing off interest in investment which the country sorely needs ...........

Why would anyone be dumb enough to invest mone or build something with big infastructure in this country? There is no scenario where they will let you profit. Restaurant, resort, factory, power plant, gold mine = lawyers, striking workers, government shakedowns, salary liquidation, and dealing with the uneducated class that rise to politic positions. All down hill for Barrack from here on out.

The way that Barrick gold transferred the contract to them, assigned to another company, was not transparent and highly questionable, where millions in pay offs, where handed under the table.The DR can not succumb to legalese arguments, when it's sovereignty is at stake. The contract should have been revised and updated, years ago, but now there is still time for all to benefit.

The arrangement to have all equipment written down to zero before taxes are paid is nothing unusual in mining contracts with governments ,,,and of course when the contract was negotiated the gold price was not that high ,,well less than $400 i suspect ..I do not think that there is anything sinister except that the company can now afford to write down its total investment more quickly and so pay tax and profit shares to the government ..There was no doubt a time schedule attached to the write down of the capital investment and this could be hastened along ..maybe to the benefit if all

The DR is hungry for new revenue, and Barrick gold is going to make out like bandits anyway, so prudence and good sense should prevail. A fair negotiation and compromise is better, than a costly court win.